Kyrgyzstan Drafts $419 Million Plan to Curb Rising Prices

Kyrgyzstan has drafted a plan worth about $419 million to curb rising prices in 2026–2027. The authorities aim to increase food production and build reserves, but fuel imported primarily from Russia remains a major source of inflationary pressure largely beyond the government’s control. The draft was presented to the Cabinet on August 21. During the first seven months of 2026, consumer prices and tariffs in Kyrgyzstan rose by 6.7% from their December 2025 level. Average annual inflation over the same period was 10.7%. Food prices rose particularly sharply, with fresh fruit up 16% and meat products 14.5%. Lamb recorded the largest increase at 23.1%. Horse meat rose by 16%, while beef increased by 14.2%. The authorities have already intervened directly in the meat market. In March, Kyrgyzstan introduced a six-month ban on livestock exports. Temporary state controls on beef and mutton prices also applied earlier this year but expired on May 2. The plan calls for increasing the productive livestock population by at least 20,000 head. Agribusinesses will be eligible for preferential loans, while the dairy and poultry sectors will receive subsidies. Storage facilities with a combined capacity of 18,000 metric tons are planned in all seven regions. Farmers are to receive 68,000 metric tons of seed and the necessary amounts of mineral fertilizer. The government also intends to ensure sufficient wheat supplies for the domestic market and purchase another 20,000 metric tons from local producers for state reserves. The draft would establish direct supply channels for agricultural products and expand the network of retail outlets operating without intermediaries. Kyrgyzstan relies on imports for almost all of its petroleum products. Deputy Energy Minister Nasipbek Kerimov said in July that Russia had supplied about 95% of the country’s annual fuel needs in recent years, with total consumption of around 2 million metric tons. This summer, Russia’s fuel shortages worsened amid refinery outages following Ukrainian drone attacks, high seasonal demand, and transport problems. Moscow tightened restrictions on fuel exports and turned to imports to support domestic supplies. For Kyrgyzstan, the decline in Russian supplies quickly became a problem. According to the National Statistical Committee of the Kyrgyz Republic, the average price of AI-92 gasoline reached 88.24 soms per liter by August 12, around 6% above the July average. AI-95 rose by 12% to 109.24 soms, while diesel increased by 5% to 102.08 soms. The government has already raised its year-end inflation forecast to 14–15% from an earlier projection of 9%, citing rising fuel costs as one reason. The National Bank of the Kyrgyz Republic kept its policy rate at 12% on July 27. Among the external inflation risks, the central bank cited volatile global food prices and possible disruptions to petroleum-product supplies through the Strait of Hormuz. Its medium-term inflation target is 5–7%. Kyrgyzstan cannot quickly replace Russian fuel, but importers have begun seeking supplies farther afield. Kanatbek Eshatov, president of the Association of Oil Traders of Kyrgyzstan, said on August 12 that reduced supplies from Russian refineries had prompted deliveries from...

Food Spending Remains High in Kazakhstan Households

A high share of household spending on food remains a key indicator of living standards in Kazakhstan, according to analysts at Finprom.kz. By the end of 2025, average annual spending on food and non-alcoholic beverages reached $1,292 per person, up 13.9% year-on-year and nearly six times higher than in 2010. At the same time, the structure of spending has remained largely unchanged. In 2025, food accounted for 47.8% of total expenditures, only slightly below the pre-pandemic level of 50.4%. As a share of income, food expenditures rose to 42.5%, compared to 40.7% a year earlier, suggesting that income growth is being largely offset by inflation. Consumption patterns also remain relatively rigid. Meat and meat products account for 34.4% of food spending, approximately $444 per person, with prices in this category rising by 18.1% over the year. Bread and cereal products (14.7%) and dairy products (10.6%) also make up a significant share. Combined, these categories account for about 60% of total food expenditures. Spending on fruit and vegetables is increasing in absolute terms by 15.3% and 22.8%, respectively, but their shares remain relatively low at 9.1% and 7.7%, pointing to limited diversification in consumption. Fish and seafood account for 4.4% of spending, and eggs for 2.1%, further reflecting a concentration on staple foods. According to analysts, inflation remains the main driver of rising expenditures. In February 2026, prices for food and non-alcoholic beverages increased by 12.6% year-on-year, compared to 6.3% a year earlier. This level is close to the highest rates recorded over the past decade, with the exception of February 2023, when growth reached 26.4%. Analysts warn that if current inflation trends persist, the share of spending on food in 2026 could again exceed 50%, limiting households’ ability to spend on non-food goods and services and placing additional pressure on living standards.